NNPCL Expects Sizable Tax, Royalty Revenue from Upcoming Gas Projects

The Nigerian National Petroleum Company Limited (NNPCL)’s Mohammed Ahmed, Executive Vice President of Gas, Power, and New Energy, claims that the country’s upcoming gas projects will generate sizable sums of money for the government in the form of taxes and royalties.
He made this statement in an interview that aired last week on the Nigerian Television Authority (NTA) Network on the NNPCL programme Energy and You.
He claims that Nigeria is working towards the commercialization of gas through a number of initiatives that will encourage people to use gas for industrialisation, cooking, and transportation rather than flare it.
According to him, the NNPCL is trying to make sure that people who produce the gas will have visibility into the returns on their investments and that customers will also be certain that there is affordability and sustainability once they start using gas.
“The Ajaokuta-Kaduna-Kano (AKK) gas pipeline corridor for instance has three major power plants, the minimum of which is 900 megawatts (MW), these power plants are aimed at sucking up available gas, putting it into use and generating power.
“This will go a long way to ensuring that industries and factories that are facing the challenge of energy availability, will be happy to suck up the energy from these power plants.”
Along with that, he discussed planned gas initiatives including the Assa North Ohaji gas project.
According to him, the project has the ability to manufacture liquefied petroleum gas (LPG), which would eliminate the need for firewood as a source of cooking fuel in the nation.
Additionally, he stated that the initiative will aid in expanding the commercialization of the gas that is already sold on the domestic market. Note that the International Energy Agency (IEA) claimed that LPG as a cooking fuel in Africa has found some traction in nations like Kenya and Nigeria in its most recent clean cooking report.
LPG is a less expensive option than installing new pipes because many African urban areas lack natural gas storage and distribution systems.
In the course of the discussion, Ahmed stated that both developed and developing nations had approached the NNPCL with requests to work together to generate liquefied natural gas (LNG) in Nigeria.
This is due to Nigeria Liquefied Natural Gas Limited’s inability to produce LNG from all of the nation’s gas.
He claims that a number of gas projects will aid in Nigeria’s shift from a petrol-dependent to a gas-dependent nation.
Remember that the government has had this as its goal ever since previous president Muhammadu Buhari approved the decade of gas project in 2021.

Source: Allnews Nigeria

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